Understanding Synthetix’s New Frontend Project Infinex with One Read

Understanding Synthetix's Infinex Project with One Read

Author: Jiang Haibo, LianGuaiNews

Kain Warwick, the founder of Synthetix, recently stated in an interview at Ethcc that they plan to launch Perps V3 and a new trading frontend called Infinex in the fourth quarter of this year. Last Friday, Synthetix publicly announced their plan to create a new trading frontend called Infinex to compete with centralized exchanges. Founder Kain published an article titled “Synthetix, what comes next, LianGuairt four” on Mirror, as a continuation of the series of articles on Synthetix’s future plans. LianGuaiNews has also translated the first article in this series, LianGuairt zero.

According to Kain, when naming the first frontend for Synthetix, he chose the word “Infinex”, but it was met with opposition from others, so they ultimately chose “Kwenta”. Now, in order to compete with centralized exchanges, Synthetix plans to launch a new frontend named Infinex, which has the following features:

• Includes referral registration links and transaction fee rebates;
• Generates a public-private key pair for each user and stores it in the browser, automatically signing transactions when trading;
• Possibly includes social or governance recovery functions;
• Continues to use the SNX token for governance;
• Captures value through incremental trading fees, integration fees, and SNX LP fees on Synthetix.

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Similar User Experience to Centralized Exchanges

Synthetix already has a frontend project called Kwenta, which, in combination with Synthetix, forms one of the main solutions for on-chain perpetual contracts. However, on-chain trading requires a certain learning curve, such as the need to securely store private keys and mnemonics, and the requirement to sign every operation, which limits the development of on-chain derivative trading.

The goal of Infinex is to design a product that maintains decentralization in theory, without centralized custodial risks, and minimizes proprietary components to circumvent regulations, while still providing a user experience similar to centralized exchanges.

Starting from registration, Infinex adopts the commonly used referral links by centralized exchanges to enhance its spread and increase the income of KOLs and other groups. Users who click on the link will be directed to a referral page, and the promoter can receive a portion of the fees generated by the referred user.

To enhance the user experience, Infinex generates a public-private key pair for each user and stores it in the browser. These keys are only used to sign transactions on Optimism. In practice, when a user clicks “Trade”, the order is automatically signed in the browser and routed to Optimism, without the need for additional user signatures.

Infinex also generates a unique deposit address for each user. Users can deposit USDT, USDC, or sUSD, and the funds are pooled into a margin pool controlled by governance. This process can be viewed on the blockchain at any time to ensure transparency of funds.

Continued Use of SNX Token for Governance

The Infinex plan still uses SNX tokens for governance and will not introduce additional tokens. After the deployment of the Infinex governance contract, SNX stakers (liquidity providers, LPs) vote to determine the Infinex board seats and elect board members.

Discussions about Infinex are also focused on Synthetix’s Discord, and Infinex will not create its own Discord before its official launch.

On July 14th, the Infinex channel was created under the Synthetix ecosystem in the Synthetix Discord, alongside projects such as Kwenta, Lyra, and Aelin.

The new Infinex frontend and the plan to continue using SNX for governance caused the SNX token price to rise by over 50% in a short period on July 14th, followed by a slight correction. However, considering that projects like Kwenta, Lyra, and Aelin have all issued their own governance tokens, there may be doubts about whether Infinex will never issue governance tokens. Even if tokens are issued, they will be airdropped to SNX stakers.

Generating Revenue through 3 Ways

Like Kwenta, Infinex is also just a frontend for Synthetix. Since the backend SNX LP provides liquidity as the counterparty to traders and bears risks, it shares all or most of the transaction fees. Frontend projects usually find it difficult to capture the value generated by exchanges. Kwenta also had almost no way to capture the value generated by contract exchanges in its early days.

Infinex will generate revenue through the following three ways:

• Charge additional fees on top of Synthetix transaction fees
• Obtain integration fees from the Synthetix Integrators program
• SNX LP fees

The fees accumulated by the protocol will be converted into SNX and used for staking. As the trading volume increases, more SNX LP positions will be accumulated, and revenue from transaction fees can be obtained through these positions.

Summary

From publicly available information, Infinex is a product launched to compete with centralized exchanges, providing a user experience similar to centralized exchanges, from referral links to signing-free trading. However, Infinex itself is just a frontend for Synthetix, and governance is still controlled by SNX LPs. The project also has ways to generate revenue.

The official website of Infinex has already been launched, and it is expected to be released in the fourth quarter of this year along with Perps V3. Users can join the waiting list on the official website. After the official launch, a certain number of traders will be invited to participate in testing on a first-come, first-served basis.

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